The bill amends Section 162.003(a) of the Property Code to clarify that individuals such as artisans, laborers, mechanics, contractors, subcontractors, or materialmen, as well as their assignees, are considered beneficiaries of trust funds related to improvements on specific real property in Texas. This change emphasizes the rights of these parties to receive payment for their contributions to construction or repair projects.

Additionally, the bill introduces a new section, 162.0031, which outlines the conditions under which a beneficiary's assignment of interest in unpaid trust funds can be enforced. It specifies that such assignments must be made in writing after the assignee has compensated the beneficiary and cannot be part of the beneficiary's construction contract. Furthermore, it stipulates that the assignee must be a beneficiary, trustee, or property owner involved in the construction or repair contract related to the trust fund payments. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 162.003 (Property Code 162)